JPMorgan Chase will stop extending student loans to customers without an existing financial relationship with Chase on July 1, JPMorgan Chase spokesman Steve O'Hallaran told The Huffington Post. This means that only existing Chase customers -- such as student loan borrowers and customers with a deposit, loan or credit card from Chase -- can apply for student loans, O'Hallaran stated in an e-mail.

O'Halloran declined to comment to The Huffington Post about JPMorgan's share of the student loan market or how much money JPMorgan was losing in the student loan business.

"We have decided to focus on providing private student loans only to current Chase customers as the private student loan market has continued to decline and government programs have expanded to help more students and their families," O'Hallaran stated in an e-mail.

As the feds crack down on private lenders' excessive fees, student loan borrowers are having a harder time paying off their loans, making student loans less profitable for banks. The percentage of student loan borrowers that defaulted by the second year of repayment has doubled since 2007 to 8.8 percent in 2011, according to the Department of Education. And 14 percent of all student loan borrowers -- or 5.18 people -- are in default, according to the Federal Reserve Bank of New York.